HOUSTON, Dec. 20, 2017 /PRNewswire/ -- Goodrich
Petroleum Corporation (NYSE American: GDP) today announced a
preliminary capital expenditure budget for 2018 of $65 - 75 million, with 100% of the budget
allocated to its core Haynesville Shale acreage position in the
Bethany-Longstreet and Thorn Lake areas of
Caddo, DeSoto and Red River Parishes, Louisiana. The Company anticipates drilling 16
gross (6.5 net) horizontal wells for the year, with a blended net
average lateral length of approximately 9,000 feet. The budget
currently contemplates that the Company would operate approximately
85% of its net wells for the year. The preliminary capital
expenditure budget is subject to quarterly review and approval by
the Company's board of directors.
Based on the preliminary budget, the Company expects to grow
production by 130 – 145% versus 2017 to a range of approximately
28.3 – 30.3 Bcfe, or an average of 77,000 – 83,000 Mcfe per day for
the year. Natural gas is expected to comprise approximately 95% of
total production.
Cash margin is expected to expand in 2018 as unit costs decrease
with the growth in volumes, and the Company is issuing a guidance
range for the following cash costs per Mcfe of production for
2018:
Basis:
|
|
|
|
Natural Gas - Henry
Hub Pricing Per Mcf Less:
|
|
$0.12 –
0.15
|
|
Crude Oil – LLS
Pricing Per Barrel Less:
|
|
$2.00 –
2.25
|
|
|
|
|
|
Mcfe
|
Lease Operating
Expense ("LOE")
|
|
$0.30 –
0.40
|
Taxes
|
|
$0.07 –
0.11
|
Transportation
|
|
$0.30 –
0.40
|
G&A
(Cash)
|
|
$0.40 –
0.50
|
The Company has hedged approximately 40 - 42% of its expected
natural gas volumes for the year at a blended average price of
$3.02 and approximately 50 - 55% of
expected crude oil volumes for the year at $51.08.
EBITDA is expected to grow by more than 200% versus 2017 and
year-end 2018 net debt to EBITDA is expected to be less than 1.5
times.
Operational Update
The Company is currently fracking its Franks 25&24 No. 1
(69% WI) well, a 10,000 foot lateral in the Bethany-Longstreet field of DeSoto Parish,
Louisiana, with plans to zipper
frac its Wurtsbaugh 25&24 No. 2 & 3 (55% WI) wells upon
completion of the Franks well. Both Wurtsbaugh wells are
approximately 7,500 foot laterals. All three wells are expected to
come online in early January.
The Company is currently drilling its Cason-Dickson 14&23 No. 1 & 2 (92% WI)
wells in Red River Parish,
Louisiana. The Cason-Dickson wells are planned as 10,000 foot
laterals and expected to be fracked in February.
OTHER INFORMATION
In this press release, the Company refers to several non-US GAAP
financial measures, including Pro Forma Adjusted EBITDA and
DCF. Management believes Pro Forma Adjusted EBITDA and DCF
are good financial indicators of the Company's performance and
ability to internally generate operating funds. DCF should
not be considered an alternative to net cash provided by operating
activities, as defined by US GAAP. Pro Forma Adjusted
EBITDA should not be considered an alternative to net loss, as
defined by US GAAP. Management believes that these non-US
GAAP financial measures provide useful information to investors
because they are monitored and used by Company management and
widely used by professional research analysts in the valuation and
investment recommendations of companies within the oil and gas
exploration and production industry.
Initial production rates are subject to decline over time and
should not be regarded as reflective of sustained production
levels. In particular, production from horizontal drilling in
shale oil and natural gas resource plays and tight natural gas
plays that are stimulated with extensive pressure fracturing are
typically characterized by significant early declines in production
rates.
Unless otherwise stated, oil production volumes include
condensate.
Certain statements in this news release regarding future
expectations and plans for future activities may be regarded as
"forward looking statements" within the meaning of the Securities
Litigation Reform Act. They are subject to various risks,
such as financial market conditions, changes in commodities prices
and costs of drilling and completion, operating hazards, drilling
risks, and the inherent uncertainties in interpreting engineering
data relating to underground accumulations of oil and gas, as well
as other risks discussed in detail in the Company's Annual Report
on Form 10-K for the year ended December 31,
2016 and other subsequent filings with the Securities and
Exchange Commission. Although the Company believes that the
expectations reflected in such forward looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct.
Goodrich Petroleum is an independent oil and natural gas
exploration and production company listed on the NYSE American
under the symbol "GDP".
View original
content:http://www.prnewswire.com/news-releases/goodrich-petroleum-announces-capital-expenditure-budget-and-2018-guidance-300573475.html
SOURCE Goodrich Petroleum Corporation